Homeowners in fraud case face settlement deadline

STROUDSBURG — Defrauded customers of Eagle Valley Homes have until Monday to get some of their money back, the Pennsylvania Attorney General's office said Friday.

DAVID PIERCE

STROUDSBURG — Defrauded customers of Eagle Valley Homes have until Monday to get some of their money back, the Pennsylvania Attorney General's office said Friday.

Several people who said they were victims of home-sale fraud at the hands of Eagle Valley charged Friday that the state has refused to pay them anything from a $750,000 restitution fund, or that they were told they missed the deadline to claim their share.

The fund is part of the state's settlement of a civil suit and criminal charges brought against the former Brodheadsville builder, its owners and other company officials.

Attorney General's Office spokesman Kevin Harley said what had been a June deadline has been extended to Monday, Aug. 28.

"We wanted to make sure we didn't miss anybody because of vacations or whatever," he said.

So far, said Harley, 17 of the 41 sets of homebuyers represented in the Eagle Valley suit have filed claims. All the money in the fund will be divided among those who have accepted settlements, he said. This will likely come as good news for homebuyers who say the settlement offers fall short of what they lost through fraud.

The state's civil suit and criminal charges against three Eagle Valley officials was settled in April. Owner Steve Parisi, 43, and mortgage broker Rose Perdue, 44, pleaded no contest to passing forged documents and were sentenced to three years' probation each.

Former owner Donald Kishbaugh, 70, also pleaded no contest to a forgery charge and was given two years' probation.

Parisi also agreed to pay $1 million to compensate the homebuyers, who say they are the victims of inflated appraisals, misrepresented loan applications, hidden second mortgages, and construction defects. The state kept $250,000 to cover court penalties and prosecution costs, leaving $750,000 for the victims.

The average compensation would total $18,000 if divided equally among all 41 sets of buyers. But many victims have refused to sign settlements because that would bar them from pursuing private legal actions, including a pending federal civil suit.

Harley said his office believes the settlement is fair and equitable to the homebuyers.

Raymond Cadiz, whose Effort home was built by Eagle Valley in 2000, said the state mishandled his paperwork.

"I mailed them every single copy of paper I had," Cadiz said. "After a while, I got no response from them and I called and they said they had no papers."

Cadiz said he sent a second set of papers. Eventually, he said, the office told him they had three sets of his paperwork, including copies he had given to former state Rep. Kelly Lewis.

Cadiz said the state offered him $18,000 late last spring, and that he wrote back to accept. The state sent another letter saying he would receive $6,300, he said, but then sent a third letter, dated June 8, claiming Cadiz had not accepted the offer within the required seven days. Cadiz produced a copy of his own letter to the agency, dated June 10, stating he would take the $6,300.

Cadiz said his loss amounted to $37,000.

According to Deputy Attorney General James Sysko, claims were carefully reviewed to determine compensation.

"These claims were established by either independent documentation supplied by you; an official appraisal commissioned by the Commonwealth; or by means of a tax assessment ratio to market value computation," he wrote in a letter.

Sarah Pasley, who bought her Effort home in 2002, said the state sent her a letter July 13 giving her 10 days to decide.

"I sent a certified letter back saying I needed more time to consult with an attorney," Pasley said. She said she followed up with a phone call and was told to wait for Sysko to respond.

Pasley said she received a letter from Sysko Thursday giving her another 10 days to accept a $30,000 offer. Pasley said she still has to resolve building defects and an illegal second mortgage issued in her name, and that it cost her another $225 to have a lawyer review the settlement offer.

"I'm at the point I just want this to be over, and I have children and I have a family," Pasley said. "It's unfortunate they're going to get away with it but I need to move on."

Karen Willins of Mountain View Estates said she accepted an $18,000 state offer, though her losses exceed $70,000, but was told by the state she missed her acceptance deadline by two days.

"First I had to find my ex-husband because they said he had to sign too," said Willins. "I was willing to accept the $18,000 because I, too, need to move on."

Yvette Owens of Blakeslee said she has called the Attorney General's office several times in response to an agency letter offer, but hasn't heard a word.

"I'm so tired," Owens said of her home woes. "It's trying to take my soul. You can't put a monetary value on the stress and difficulties of this. Because I have an illegal second mortgage on this house I can't sell it."

Esther Jeppson of Terrace Drive, Saylorsburg, said she has no intention of accepting anything that absolves Eagle Valley of any other liability.

"The AG's Office already knows my situation and why should I have to respond to anything when I sent all the papers to them?" Jeppson asked. "They want you to drop the charges against Eagle Valley and why should I apply?"